DMSI Asks The Government To Make It Easier For The Regulation Of Non-New Capital Goods

Palm Oil Plantation (Photo: Doc. Antara)

JAKARTA - The Indonesian Palm Oil Council (DMSI) has asked the government to facilitate various regulations that provide attractiveness for foreign investors to Indonesia.

DMSI sees a tendency for Europe to issue various regulations that will hinder Indonesian palm oil entering Europe, so it is very likely that downstream palm oil industries from Europe are very interested in relocating their factories to Indonesia. The factory and/or equipment are categorized as non-new capital goods (BMTB).

"The downstream palm industry that will be relocated is a large business group that has a sustainable market base and downstream production abroad. This BMTB facilitation is very beneficial for investment in Indonesia," said Plt. DMSI Chairman Sahat Sinaga at a press conference "Tantangangangan dan Kembangan Industri Hilir Sawit 2023" in Jakarta, Tuesday, February 7.

Sahat said that the regulations for facilitating imports of capital goods are expected to provide more convenience to attract investment in the downstream oil palm sector.

"The BMTB facility can make it easier for companies. The reason is, companies can take advantage of the excess engine units or parts that are actually still productive, but are no longer needed," he said.

Furthermore, said Sahat, the Ministry of Trade has actually regulated the facilitation of BMTB imports through the Regulation of the Minister of Trade Number 25 of 2022 concerning Amendments to Regulation of the Minister of Trade Number 20 of 2021 concerning Policies and Strengthening Imports.

However, there are some capital goods that require technical recommendations from the Directorate General of Metal, Machinery, Transportation Equipment, and Electronics (ILMATE) of the Ministry of Industry.

Later, continued Sahat, the granting of this recommendation will involve surveyors for BMTB verification who will enter Indonesia, such as Sucofindo and/or the Association of Machinery Fabricators in Indonesia such as GAMMA, to justify BMTB that will enter Indonesia.

"So, BMTB must go through the verification process of Sucofindo to monitor these goods in the country that will send them to Indonesia, so that the goods used are still feasible," he said.

Therefore, Sahat asked the government to accelerate the discussion of this new regulation, so that the downstream oil palm industry activities can run smoothly.

"Hopefully, downstream palm oil can contribute investment to the country and the use of palm oil products in the country can increase by more than 65 percent, so that by itself Indonesia will be able to become a price setter," he concluded.